In our survey over the first two weeks of February of broad line electronics retailers we found that the Apple iPod continues to lead the market for MP3 players. The Apple iPod was seen as the “best” MP3 player by 75% of our respondents (up from 71% in our December survey) while Microsoft Zune player was seen as “best” by the remaining 25% (up from 11% in our December survey). Interestingly Creative Zen, Sandisk and other vendors were shut out in this category. We asked about the cheapest MP3 players in the market as well in our survey and found the Best Buy brand Insignia player cited as the “cheapest” by 25% of our respondents (note that roughly 50% of our survey responses were from Best Buy stores) and 21% cited the Sandisk Sansa line of MP3 players. Brands such as Nextar, Creative, Isonic and iLo were also mentioned as being the “cheapest”. We also asked respondents to tell us if they viewed a stand alone MP3 player or a combination music phone to be the better device. 50% of respondents stated that a music phone is the better device while 39% said that a stand alone MP3 player was better. This is a shift from our December survey where more respondents preferred the MP3 players to a music phone by a margin of 49% to 42%. Storage capacity and sound quality were the primary elements cited by MP3 player supporters while convenience and the 2:1 benefits of the music phone were mentioned by those preferring the music phones.

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